“We remain confident in the group’s prospects.”
These were the words of group chief executive Lance Batchelor when Saga Plc released its interim results this morning. For the six months ended July 31, the over-50s insurer posted a 3.2% rise in pre-tax profit – to this year’s £109 million from £105.6 million in the same period in 2017.
Saga thanked the £2.2 million positive movement in the fair value of derivatives, as well as strong underwriting performance from Acromas Insurance Company Limited, which generated a profit before tax of £45.6 million. However, things were challenging in retail broking, with written profits down 6.2% at £63.4 million.
Meanwhile Saga’s travel business is busy with the construction of its new cruise ship called Spirit of Discovery (pictured), which is slated for a July 2019 maiden cruise.
“At the end of last year, we announced our intention to invest in new customer acquisition,” commented Batchelor. “I am pleased to report significant progress in the first half of the year.
“Our retail broking policy count is back to the levels seen in the first half of 2017, despite a more competitive pricing landscape. Underwriting results continue to be strong, with another excellent claims management performance.”
Described as “highly cash generative,” Saga is paying a dividend of 3 pence.
